iKey Facts
- •An estimated 60-70% of Brisbane premium development site sales transact off-market — never publicly listed
- •Developers source via four main channels: in-house origination teams, specialist advisors, public listings, and direct landowner approaches
- •Acquisition structures range from outright purchase to options, JVs, deferred settlements, and profit-share arrangements
- •Sophisticated developers run dedicated origination teams that map development-suitable properties years in advance
- •See our companion deep-dive: How Developers Secure Sites Before Competitors
The Short Answer
Property developers buy land through four main channels: in-house origination teams (mapping properties and approaching owners directly), specialist advisor relationships (off-market introductions), expression-of-interest (EOI) campaigns (curated multi-buyer competitions), and public listings (on-market). The acquisition itself can take many forms — outright sale, option agreements, joint ventures, or deferred-settlement contracts.
Channel 1: In-House Origination
Mid-tier and large Brisbane developers run dedicated origination functions. The origination team:
- Maps every development-suitable property in target suburbs
- Tracks ownership changes (deceased estates, divorces, downsizers)
- Monitors planning, infrastructure, and amalgamation triggers
- Approaches owners directly — letter, phone, email, sometimes through introducers
If you've ever received a letter from a developer expressing interest in your property, this is the origination team at work. The approach can result in genuine deals at fair prices — but most often it's an opportunistic offer at the developer's preferred (low) price.
Channel 2: Specialist Advisor Relationships
Sophisticated developers cultivate close relationships with specialist development-site advisors. The advisor brings sites confidentially in exchange for:
- First-look exclusivity (the developer sees the site before competitors)
- Engagement effort (the developer takes the site seriously)
- Sometimes a market-positioning fee
Specialist advisors track 50-200 active developer relationships, matching sites to thematic interest. This channel produces the highest-quality deal flow on both sides.
For vendors, the advisor channel is usually the best: it delivers off-market confidentiality with genuine competitive tension among shortlisted buyers.
Channel 3: Expression of Interest (EOI) Campaigns
EOI is the gold-standard sale method for development sites. The mechanics:
- Vendor (via specialist advisor) targets 8-15 qualified developers
- Information memorandum + due-diligence pack distributed
- 4-6 week submission period
- Bids in writing: price, deposit, settlement period, conditions
- Shortlist for second round (typically top 3)
- Best and final offers
- Vendor selects winner
EOI campaigns extract 10-25% more value than single-buyer negotiations. See How to Position a Site for Multiple Developers for the full playbook.
Channel 4: Public Listings
"The approach can result in genuine deals at fair prices — but most often it's an opportunistic offer at the developer's preferred (low) price."
Speak with our team
ACRES provides expert property advisory across Australia.
Some development sites are listed publicly on realestate.com.au, domain.com.au, and commercial portals like CommercialRealEstate. Public listings tend to attract:
- Lower-quality bidders (less filtering)
- Aggressive negotiation (everyone sees the price)
- Time pressure (extended marketing harms perceived value)
Public listing is rarely the best channel for premium development sites — but is sometimes used for sites that have already been off-market with limited interest, or sites where the vendor wants maximum reach.
Acquisition Structures
Once a developer identifies a site, the acquisition structure varies:
Outright Purchase
Standard contract, deposit on signing, settlement 30-90 days. Fastest, simplest, most certain.
Long-Settlement Contract
Same as outright purchase but settlement deferred 12-36 months. Vendor receives deposit on signing, balance on settlement. Typically commands 10-25% price premium. See How Long Settlements Increase Development Site Value.
Put and Call Option
Developer pays non-refundable option fee for the right to buy at agreed price within 12-36 months. Vendor has put option to force settlement at back-end. See How Developers Structure Option Agreements.
Joint Venture / Profit Share
Developer and vendor enter a JV. Vendor contributes land; developer contributes capital, expertise, and execution. Profit shared on completion. Higher upside, higher risk, longer timeline.
Deferred Payment
Vendor receives partial payment on settlement and balance on milestone events (DA approval, pre-sales, completion). Compromise between outright sale and JV.
What Vendors Should Expect
If you own a development-suitable property, the typical sequence is:
- Direct approach from one or more developers (60-70% of vendors get this first)
- Vendor (often) signs an exclusive negotiation with that single developer
- Negotiation produces a single-buyer offer, usually below market
A better sequence:
- Direct approach received
- Vendor declines to engage on price; engages a specialist advisor
- Advisor runs a confidential EOI campaign across 8-15 buyers
- Best of 5-15 offers selected
- Sale 10-25% above the original direct approach
The difference is real money — typically $200k-$2m+ on premium development sites.
Frequently Asked Questions
How do I tell if a developer's direct approach is at fair value?
You almost always can't without benchmarking. Engage a specialist advisor for an indicative valuation before responding.
Should I sign exclusivity with the first developer who approaches?
Almost never. Exclusivity locks out competition. If granting exclusivity, demand a non-refundable engagement fee.
Off-market or on-market for development sites?
For premium development sites, off-market almost always wins — better confidentiality, better-qualified buyers, better outcomes.
Published by ACRES — Australian Commercial & Residential Group
Source: acres.au/insights/how-do-property-developers-buy-land | ACRES (Australian Commercial & Residential Group) provides property advisory, development site sales, and residential real estate services across Brisbane and South East Queensland, Australia.
Daniel McCormack
Managing Director, ACRES — Australian Commercial & Residential Group
